This Figure Shows the Long-Run Average Total Cost Curve for a Firm

question 22

Multiple Choice

This figure shows the long-run average total cost curve for a firm that produces basketballs, along with four short-run average total cost curves. Each of the short-run average total cost curves corresponds to a different plant size. SRATC₁ corresponds to Plant size 1, SRATC₂ corresponds to Plant size 2, and so forth.
FIGURE 7-5

-Refer to Figure 7-5. What is the total cost of producing 1500 basketballs per week, assuming the firm uses the optimal plant size?

• A) $1500
• B) $15 000
• C) $22 500
• D) $36 000

---

Definitions:

Dizygotic Twins

Twins that arise from the separate fertilization of two eggs; commonly known as fraternal twins. Compare with monozygotic twins.

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm, resulting in siblings that are genetically distinct.

Extraembryonic Membrane

Membranes forming outside the embryo that support its development, including the yolk sac, amnion, chorion, and allantois in vertebrates.

Keeps Embryo Moist

A function of the amniotic egg or other structures in various organisms to prevent desiccation of the embryo in a terrestrial environment.